California homeowners’ insurance exodus: How are homebuyers impacted?

“We’re
actually
getting
quotes
up
front
so
that
buyers
aren’t
shocked
when
they
find
out
that
their
homeowner’s
insurance
went
up,”
she
said.
“[For
example]
they
thought
it
was
going
to
be
$3,000
and
now
it’s
$5,000.
So
that’s
one
of
the
things
that
I’ve
never
really
had
to
do
before
–
but
we’re
working
on
that
up
front.”

Insurance
costs
add
to
grim
affordability
outlook
for
California
buyers

Surging
costs
are
just
another
obstacle
in
the
way
of
homebuyers
in
a
market
already
gripped
by
affordability
challenges
and

eyewatering
prices.
Throughout
the
state,
prices
jumped
by
10.3%
in
March
compared
with
the
previous
year,

according
to
Redfin,
with
a
median
sale
price
of
$818,600
across
all
home
types.

Annual
home
prices
rose
by
7.4%
in
the
first
quarter
as
supply
constraints
continued
to
fuel
price
increases,
according
to
the
latest
Fannie
Mae
Home
Price
Index.https://t.co/qGNYwBEudj#mortgagenews

#mortgageindustry

#houseprices

#singlefamily

—
Mortgage
Professional
America
Magazine
(@MPAMagazineUS)

April
18,
2024

Bennett
said
supply
issues
remained
one
of
the
California
market’s
most
prominent
challenges,
making
it
especially
difficult
for
prospective
first-time
homebuyers
to
get
a
foot
on
the
ladder
and
secure
a
property.

“There’s
still
high
demand
because
rents
are
high.
People
are
tired
of
paying
$4,000,
$5,000
a
month
in
rent,”
she
said.
“But

there’s
limited
inventory,
and
the
price
appreciation
with
these
high
interest
rates
is
making
it
really
challenging
for
first-time
buyers
and
even
move-up
buyers
to
justify
paying
the
prices
that
they’re
having
to
pay
with
rates
where
they’re
at.”

That’s
not
to
mention
the
fact
that
the
market
is
continuing
to
operate
at
a
decent
clip
with
multiple
bids
on
properties
remaining
commonplace,
even
amidst
a
wider
slowdown
over
the
past
24
months.